New Delhi [India], January 4: India’s foreign exchange reserves rose by USD 3.293 billion in the week ending December 26, reaching USD 696.610 billion, driven by increases in both gold reserves and foreign currency assets, according to the Reserve Bank of India’s (RBI) latest Weekly Statistical Supplement.
Foreign currency assets (FCA), the largest component of the reserves, stood at USD 559.612 billion, up USD 184 million, while gold reserves surged by USD 2.956 billion to USD 113.320 billion. The recent rise in gold reflects strong investment demand amid global uncertainties.
The forex kitty is approaching its all-time high of USD 704.89 billion, recorded in September 2024. Over 2025, India added roughly USD 56 billion to its reserves, compared with just over USD 20 billion in 2024. In 2023, the reserves rose by USD 58 billion, following a decline of USD 71 billion in 2022.
The RBI has indicated that India’s external assets are sufficient to cover more than 11 months of merchandise imports, underscoring the resilience of the country’s external sector. FX reserves, held primarily in US dollars and other major currencies, allow the central bank to manage rupee liquidity and intervene strategically to prevent sharp currency fluctuations. (ANI)
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